Apple filed a lawsuit against OpenAI and two former Apple employees, alleging that the ChatGPT maker misappropriated Apple trade secrets to support its push into consumer hardware as reported by NYT. The case was filed in the U.S. District Court for the Northern District of California.
The lawsuit marks a major escalation between Apple and OpenAI as the companies move from AI partners to potential hardware rivals. Apple integrated ChatGPT into Siri and other Apple experiences in 2024, while OpenAI has been expanding into consumer hardware following its $6.5 billion acquisition of io Products, the startup connected to former Apple design chief Jony Ive.
Apple’s complaint accuses OpenAI of orchestrating a broader effort to acquire and use Apple’s confidential information through former employees, recruiting practices, and supplier relationships. Apple alleges the effort was intended to accelerate OpenAI’s entry into consumer devices.
The former Apple employees named in the suit are Tang Yew Tan, OpenAI’s chief hardware officer and a former Apple vice president of product design for iPhone and Apple Watch, and Chang Liu, a former Apple senior system electrical engineer who later joined OpenAI. OpenAI Foundation, OpenAI Group PBC, and io Products were also named as defendants.
Apple alleges that Liu failed to return a company-issued laptop and later used an authentication bug to access Apple’s internal network and download confidential hardware-related files. The company also alleges that Tan emailed himself information about Apple suppliers and internal industry summaries before leaving Apple.
The complaint also claims that Tan encouraged Apple employees to bring Apple parts to OpenAI job interviews for “show and tell” sessions. Apple further alleges that OpenAI employees sought confidential information from Apple suppliers, including information tied to manufacturing processes.
The dispute highlights the strategic importance of AI hardware as OpenAI seeks to build a more direct relationship with consumers beyond software. A successful OpenAI device strategy could potentially reduce dependence on smartphones, apps, and operating systems controlled by companies such as Apple.
Apple said in the filing that more than 400 former Apple employees now work at OpenAI, but legal experts noted that hiring former employees from a competitor is not itself illegal in California. The central issue will likely be whether confidential Apple information was taken and used to support OpenAI’s hardware efforts.
OpenAI denied wrongdoing and said it has no interest in other companies’ trade secrets. The allegations have not been proven in court.
Our statement in response to this suit: We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere. https://t.co/lIxGW6hyz5
— Drew Pusateri (@drewpusateri) July 10, 2026
The lawsuit comes as Apple faces pressure to strengthen its AI strategy and as OpenAI expands beyond chatbots and software into devices, interfaces, and consumer AI experiences. The case could become one of the most closely watched legal battles in the AI hardware market.
